Slide 1: First-Quarter Results and Full-Year 2008 Financial Outlook
Exhibit 99.2 First-Quarter Results and Full-Year 2008 Financial Outlook April 29, 2008
Slide 2: Agenda
Agenda Business Conditions Jim Vandenberghe, Vice Chairman First-Quarter Results and Full-Year 2008 Outlook Matt Simoncini, SVP and Chief Financial Officer Summary and Outlook Bob Rossiter, Chairman, CEO and President Q and A Session 2
Slide 3: Business Conditions
Business Conditions 3
Slide 4: Global Automotive Industry Environment
Business Conditions Global Automotive Industry Environment* Global industry production for 2008 is projected to be up 3%, driven by solid growth in emerging markets Business conditions in North America remain challenging: 2008 industry production forecasted at the lowest level since 1993 Shifts in c
Slide 5: 2008 Outlook for Industry Production
Business Conditions 2008 Outlook for Industry Production* 2008 Industry Production Forecast (in millions of vehicles) Major Market 2008 B/(W) 2007 North America 14.1 (6)% Europe 20.2 0% China 7.8 13% Brazil 3.0 12% India 2.5 31% Russia 1.8 19% Global 70.6 3% 17.2 North American Production (in millio
Slide 6: Composition of North American Market Changing
Business Conditions Composition of North American Market Changing* 2004 2008 Outlook Full-Size Pickups Crossovers Crossovers and Large SUVs 9% Full-Size Pickups 17% 25% and Large SUVs 20% Minivans and Passenger Cars Minivans and Other Light Trucks 41% Passenger Cars Other Light Trucks 44% 25% 19% No
Slide 7: Key Commodity Price Trends Since 2004
Business Conditions Key Commodity Price Trends Since 2004 Steel (Hot Roll) Copper $0.50 $0.45 $0.40 $0.35 $0.30 Jan '04 Mar '08 Source: AAM Source: NYMEX Steel pricing includes processing fee Crude Oil Foam Chemicals Source: ICIS Source: AAM (LME) Foam price is estimated based on isocyantes and poly
Slide 8: Monitoring and Managing Supply Chain
Business Conditions Monitoring and Managing Supply Chain* Lear has been pro-active in monitoring and managing supply chain for several years Actions have included supply base compression, value engineering, selective in-sourcing and managing contractual terms Lear significantly decreased its exposur
Slide 9: Benefits of Lear's Global Organization Structure
Business Conditions Benefits of Lear’s Global Organization Structure* During the first quarter, Lear implemented a new global operating structure for its Seating and Electrical and Electronic business units. This structure . . . Best aligns Lear with global strategies of major customers Allows Lear
Slide 10: First-Quarter Results and Full-Year 2008 Outlook
First-Quarter Results and Full-Year 2008 Outlook 10
Slide 11: First Quarter 2008 Financial Highlights
First Quarter 2008 Financial Highlights* First-Quarter 2008 Results Improve Net sales in core business of $3.9 billion, up 2% Core operating earnings of $187 million, up 10%** Free cash flow of $(31) million** Major Factors Impacting First-Quarter 2008 Results Impact of major supplier strike (~ ~ 90
Slide 12: First Quarter 2008 Industry Environment
First Quarter 2008 Industry Environment First Quarter First Quarter 2008 2008 vs. 2007 North American Production Industry 3.5 mil down 8% Domestic Three 2.1 mil down 13% Lear's Top 15 Platforms 0.8 mil down 16% European Production Industry 5.2 mil flat Lear's Top 5 Customers 2.7 mil down 2% Key Comm
Slide 13: First Quarter 2008 Reported Financials
First Quarter 2008 Reported Financials First First 1Q '08 (in millions, except net income per share) Quarter 2008 Quarter 2007 B/(W) 1Q '07 Net Sales $3,857.6 $4,406.1 ($548.5) Income Before Interest, Other Expense and Income Taxes* $162.9 $184.4 ($21.5) Pretax Income $109.5 $82.3 $27.2 Net Income $
Slide 14: First Quarter 2008 Restructuring Impact
First Quarter 2008 Restructuring Impact* First Quarter Income Before Interest, (in millions) Other Expense and Income Taxes Reported Results 2008 Total Company $ 162.9 Income Statement Category Reported Results Include the Following Items: COGS SG&A Costs related to restructuring actions $ 23.6 $ 22
Slide 15: First Quarter 2008 Net Sales Changes and Margin Impact
First Quarter 2008 Net Sales Changes and Margin Impact Net Sales Margin Performance Factor Change Impact Comments (in millions) Industry Production / $ (323) Negative Lower production in North America, Platform Mix / Net Pricing including impact of major supplier strike Global New Business 96 Neutra
Slide 16: First Quarter 2008 Seating Performance
First Quarter 2008 Seating Performance* Adjusted Seating Segment Margins Explanation of First Quarter Year-to-Year Change Sales Factors Increase driven by favorable foreign exchange and the benefit of new business about offset by lower production in North America Margin Performance Slight improvemen
Slide 17: First Quarter 2008 Electrical and Electronic Performance
First Quarter 2008 Electrical and Electronic Performance* Adjusted Electrical and Electronic Segment Margins Explanation of First Quarter Year-to-Year Change Sales Factors Increase driven by favorable foreign exchange partially offset by lower production in North America Margin Performance Improveme
Slide 18: First Quarter 2008 Free Cash Flow
First Quarter 2008 Free Cash Flow* (in millions) First Quarter 2008 Net Income $ 78.2 Depreciation / Amortization 74.5 Working Capital / Other (138.6) Cash from Operations $ 14.1 Capital Expenditures (45.5) Free Cash Flow $ (31.4) * Free cash flow represents net cash provided by operating activities
Slide 19: 2008 Outlook Full-Year Production Assumptions
2008 Outlook Full-Year Production Assumptions* Full-Year Change from 2008 Outlook Prior Year North American Production Total Industry ~14.1 ~ mil down 6% Domestic Three ~8.5 ~ mil down 10% Lear's Top 15 Platforms ~3.4 ~ mil down 16% European Production Total Industry ~20.2 mil ~ flat Lear's Top 5 Cu
Slide 20: 2008 Outlook Full-Year Financial Forecast
2008 Outlook Full-Year Financial Forecast* 2008 Full-Year Financial Forecast Net Sales ~ ~ $15.5 billion Core Operating Earnings $660 to $700 million Income before interest, other expense, income taxes, restructuring costs and other special items Interest Expense $185 to $195 million Pretax Income $
Slide 21: Summary and Outlook
Summary and Outlook 21
Slide 22: First Quarter 2008 Summary
First Quarter 2008 Summary Continuation of solid global operating performance, despite industry challenges in North America Implemented global operating structure for business units, including the relocation of global seat engineering and purchasing positions to China Completed strategic review of e
Slide 23: Electrical and Electronic Strategy Update
Electrical and Electronic Strategy Update* Completed a comprehensive global strategic review Established global organizational structure Global product line strategy and responsibility Executing restructuring plan and evaluating investment opportunities Manufacturing and infrastructure cost reductio
Slide 24: Continuing to Evolve Low-Cost Footprint
Continuing to Evolve Low-Cost Footprint* New seat foam plant in Wuhu, China New seat trim facility in Hai Phong, Vietnam Expanded Electrical & Electronic production at WOFE in Shanghai, China Other new low-cost facilities being established in Asia, Eastern Europe, Morocco and Mexico Wuhu Foam Plant
Slide 25: Recognized as an Industry Leader
Recognized as an Industry Leader “Supplier of the Year” for global Seating Systems 3 Silver “World Excellence Awards” – Genk, Belgium, St. Thomas, Ontario, Canada and Liberty, Missouri “Supplier Recognition” for significant cost results in Brazil “Highest rated seat supplier” “VW Group Award 2008 fo
Slide 26: Summary and Outlook
Summary and Outlook* Business structure improvements being aggressively implemented to improve long-term competitiveness: Divested Interior business; retained minority interest Aggressive actions to improve cost structure since 2005 Sales diversification; expanding low-cost footprint Adopted global
Slide 27: Advance Relentlessly
R A DVANCE R ELENTLESSLY ™ LEA Listed NYSE www.lear.com 27
Slide 28: Non-GAAP Financial Information
Non-GAAP Financial Information In addition to the results reported in accordance with accounting principles generally accepted in the United States (“GAAP”) included throughout this presentation, the Company has provided information regarding “income before interest, other expense and income taxes,”
Slide 29: Non-GAAP Financial Information: Core Operating Earnings
Non-GAAP Financial Information Core Operating Earnings Three Months (in millions) Q1 2008 Q1 2007 Pretax income $ 109.5 $ 82.3 Divestiture of Interior business - 25.6 Interest expense 47.4 51.5 Other expense, net * 6.0 25.0 Income before interest, other expense and income taxes $ 162.9 $ 184.4 Restr
Slide 30: Non-GAAP Financial Information: Segment Earnings Reconciliation
Non-GAAP Financial Information Segment Earnings Reconciliation Three Months (in millions) Q1 2008 Q1 2007 Seating $ 183.3 $ 197.1 Electrical and electronic 35.3 17.5 Interior - 8.8 Segment earnings 218.6 223.4 Corporate and geographic headquarters and elimination of intercompany activity (55.7) (39.
Slide 31: Non-GAAP Financial Information: Adjusted Segment Earnings
Non-GAAP Financial Information Adjusted Segment Earnings Three Months Q1 2008 Three Months Q1 2007 Electrical and Electrical and (in millions) Seating Electronic Seating Electronic Sales $ 3,036.1 $ 821.5 $ 2,994.2 $ 788.7 Segment earnings $ 183.3 $ 35.3 $ 197.1 $ 17.5 Costs related to restructuring
Slide 32: Non-GAAP Financial Information: Cash from Operations and Free Cash Flow
Non-GAAP Financial Information Cash from Operations and Free Cash Flow Three Months (in millions) Q1 2008 Net cash provided by operating activities $ 125.8 Net change in sold accounts receivable (111.7) Net cash provided by operating activities before net change in sold accounts receivable (cash fro
Slide 33: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding anticipated financial results and liquidity. Actual results may differ materially from anticipated results as a